Bidenomics is not working for small businesses.
Optimism among small business owners dropped in March to the worst level since the end of 2012, the National Federation for Independent Business (NFIB) said Tuesday.
The NFIB’s index of small business sentiment fell to 88.5, lowest than even the most pessimistic forecasts, from 89.4 in the prior month. Economists had forecast a slight improvement to 89.9.
The index has been lower than average since about a year into Biden’s presidency. March is the 27th consecutive month below the 50-year average of 98.
Inflation is the leading concern among small business owners, with 25 percent of owners saying it is their biggest worry. That’s up two points from the previous month. The net percent of owners raising average selling prices rose seven points from February to 28 percent after seasonal adjustments.
The major inflation indexes showed inflation picking up steam in February and March. The government will report the change in the consumer-price index for March on Wednesday.
“Owners continue to manage numerous economic headwinds,” said Bill Dunkelberg, the NFIB’s chief economist. “Inflation has once again been reported as the top business problem on Main Street and the labor market has only eased slightly.”
The net share of small firms expecting higher inflation-adjusted sales in the next six months dropped by a sharp 8 percentage points to minus 18 percent, the lowest since May.
The revival of inflation concerns can be seen elsewhere in the report. The net percent of owners expecting better credit conditions fell in March, likely a reflection of retreating hopes for rate cuts from the Fed. The share saying now is a good time to expand their business and the share saying they have plans to make capital outlays or expand payrolls also fell.